On the 13th, European Commission President Ursula von der Leyen and Indonesian President Joko Widodo announced that both sides had reached a consensus to advance the finalization of the agreement, with hopes of officially signing the Indonesia-EU Comprehensive Economic Partnership Agreement (I-EU CEPA) within this year, significantly deepening economic and trade cooperation.

The negotiations for the I-EU CEPA began in 2016, but were stalled due to Indonesia's trade protection policies and EU restrictions on palm oil imports. Additionally, multiple trade disputes arose over Indonesia's nickel ore export ban and EU anti-dumping duties on Indonesian stainless steel products. However, with the bilateral negotiations reaching a conclusion in June of this year, von der Leyen and Widodo announced the achievement of the agreement.

Von der Leyen stated that the new trade agreement would open up new markets for the EU, create more opportunities for businesses, and help strengthen the supply chains of key raw materials needed for Europe's green technology and steel industry. Widodo also stated that both sides are prepared to sign the agreement, supporting Indonesia's industrial development and job creation, emphasizing that the economic partnership between Indonesia and the EU will significantly contribute to global economic and geopolitical stability.

According to the American media outlet The Diplomat, the Indonesia-EU CEPA encompasses 21 areas of cooperation, including goods, services, investment, digital trade, and sustainable development, which will greatly reduce trade tariffs between both parties, promoting economic cooperation. The agreement is also viewed as a strategic response to U.S. President Trump's announcement of a 30% and 32% tariff on both sides starting August 1.